Just two months after completing the acquisition of Luminosity Gaming, Vertiqal Studios is preparing to sell the historic esports organisation to settle outstanding debts to players and creators, the company has confirmed to The Esports Radar.
As part of the move, Vertiqal will retain its valuable Google Ad Monetisation (GAM) licence for YouTube and establish a long-term partnership with Luminosity’s new owners, marking another chapter in the complex transition of assets formerly owned by Enthusiast Gaming, which has divested multiple properties as part of its pivot to a product-first strategy.
The Esports Radar reached out to Vertiqal Studios’ Chairman and CEO, Jon Dwyer, following reports of unpaid creators. In a statement, Dwyer elaborated on the company’s strategy, revealing that the acquisition of Luminosity was part of a larger deal primarily aimed at securing the GAM licence.
“We purchased [the assets from] Enthusiast in a blind process because we were seeking the Google ad monetisation license,” Dwyer said. “Enthusiast paid [approximately $11 million USD in cash, 18.25 million shares, and a ~$4.3 million vendor-take-back note] for OmniaMedia, which gave them the globally unique GAM license. Vertiqal purchased the licence alongside all the other assets for C$900,000 [~$648,000 USD].”
The GAM licence, which allows premium YouTube ad monetisation and is held by fewer than 50 entities globally, is a significant asset. “Disney and The New York Times are among the holders of a GAM licence,” Dwyer said. “Vertiqal is the new publisher on the block with a GAM licence thanks to the Enthusiast Gaming acquisition.”
Sale Proceeds to Pay Outstanding Arrears
Dwyer confirmed that the sale of Luminosity is the final step in this strategy. “Our goal has always been to sell the non-core assets in order to facilitate the overall cost of the transaction,” he stated. He provided explicit details on how the sale will resolve the outstanding payments to Luminosity talent: “The proceeds from the sale of Luminosity will be paid to Lumi talent in order to settle outstanding arrears. The new owner group has stipulated that on receipt of funds, Vertiqal is to pay Luminosity arrears immediately, such that new ownership receives the business free of liabilities.”
He added, “We are working diligently to close as soon as possible, and therein pay all players immediately.”
Also read: Vertiqal Studios completes Luminosity Gaming acquisition
This process also explains the recently leaked creator termination emails. “As we’re working diligently to close, we didn’t want to string the players along any further, so we released individuals that were not chosen by the new ownership group,” Dwyer explained. “This is a critical process in positioning the business for sale.” He provided a list of the creators who will be transitioning to the new ownership: MkLeo, Maister, Marss, Sonix, NiteTimeClasher, Void, WeThePeople, KDotDaGawd, Gems, KarimCheese, 8owser16, Emiliath, Loveabilities, and Sandstorm.
A Turbulent Transition and Optimistic Future
Under the new structure, Vertiqal Studios will no longer hold equity ownership in Luminosity Gaming but will continue as a commercial partner. “Vertiqal Studios has struck an ongoing partnership with the new ownership team, allowing us access to Luminosity talent and inventory on a preferred rate card,” Dwyer said. “We will be working hand-in-glove with new ownership to support their incredible journey ahead as a financial partner.”
Dwyer expressed strong optimism for Luminosity’s future, stating the new owners will bring the organisation “back to its former glory and beyond.” He emphasised that long-term ownership of Luminosity was never Vertiqal’s goal. “This was never an asset we intended to own in the long-run, and I have always felt it my duty to make sure the asset lands back in the right hands,” he said. “I think esports culture is going to be very happy with the new ownership group.”
The sale represents a major shift from Vertiqal’s initial plan to fully integrate Luminosity into its network of over 150 social channels, stated in an interview with The Esports Radar before the acquisition was completed. However, in that same interview, Jon had already hinted at working with ‘partners’ to restore Luminosity, a plan that has evolved significantly.
Dwyer added that the decision aligns with Vertiqal’s broader vision of enabling esports brands to operate more independently. “This is not about me and my abilities, nor is it about Vertiqal owning Luminosity ongoing. These esports organisations need to live in the culture, unburdened by a corporate hand,” he said. “As a partner selling against Luminosity talent and inventory, Vertiqal will play its partner role while new ownership leads the organisation authentically into the future.”
For Luminosity’s fans and creators, questions remain over how the new ownership will address the community’s recent concerns and re-establish the organisation’s public presence. As Dwyer put it, however, Vertiqal’s role will now be that of a supporting partner rather than a corporate steward.
With the sale underway and a partnership framework in place, Luminosity Gaming appears headed into a new phase—this time under fresh leadership, and with Vertiqal Studios watching from a strategic distance. The organisation’s community now awaits the official announcement of the new owners and the resolution of all outstanding payments.
